Samsung and LG to experience huge growth

Motorola and Nokia may be the giants in the industry, but Samsung Electronics and LG Electronics aren’t about to throw in the towel. Quite the contrary, a Korean brokerage firm is predicting that Samsung’s handset shipment will grow to over 120 million units next year, a 17.6% growth from this year. And LG, the world’s fourth largest mobile handset maker in the world, is expected to up their production and shipment by 30% in 2006. These growth rates are well above the expected global industry rate of 10%.

Tongyang Securities cites increased production of low-cost models, emphasizing WCDMA, as the main thrust behind the expected growth from both companies. In recent news, LG has introduced a sub $50 CDMA handset, for example. These ultra low-priced handsets that will be put out by LG and Samsung will be particularly targeted at the market in India, as well as increased shipment to Western Europe. Both companies are also set to further promote WCDMA business in 2006.